Minimizing risk, maximizing efficiency: pinnacol assurance

INDUSTRY:

Insurance

CHALLENGE:

A risk management companywants to improve its own safetyafter storing critical informationin-house

SOLUTION:

Iron Mountain Data Centerscolocation

VALUE:

• Increased security, redundancy, power, connectivity and reliability as well as high standards of customer service
• Colocation data center adjusted to meet shifting needs, even after the contract was signed
• Greater energy efficiency leading to greater cost efficiency as a result of outsourcing data center

Minimizing Risk,Maximizing Efficiency

As a leader in workers' compensation coverage for Coloradocompanies, no matter their size or risk, Pinnacol Assurancerecognizes the importance of safety. Along with insurancecoverage, the company provides risk management trainingand educational materials to all its policyholders, as well asfree services from its team of safety consultants-the largestin the state.

This belief in safety prompted the company to analyzethe on-premise data center in its corporate headquarters.Built in 2003 to house the company's critical information,it seemed to be at risk of underperforming. Its three legacyComputer Room Air Conditioning (CRAC) units were rackingup high energy costs and simply weren't meeting its standards.The data center's lack of redundancy also put Pinnacol atrisk for data loss should the company experience anunexpected outage.

After evaluating the data center's infrastructure, maintenanceand operating costs, and the limited ability for the facility tosupport redundant power without significant cost and effort,Pinnacol's Informational Services group found the data centerto be outdated and inefficient. They built a comprehensiveTotal Cost of Ownership (TCO) model, and determined it wasmore cost-effective to outsource data center services thanto update the facility.

Initially uncomfortable aboutrelocating the company's missioncritical data off-premise, Pinnacoldecided to find a local facility thatit could access easily. Besidesgeographic proximity, it wantedsecurity, redundancy, power,connectivity and reliability, butwith its high standards forcustomer service and facilitiesmanagement, those would becomethe determining factors.

"We aren't their largest clientbut we're treated like we are."

- Brian Lindley
  Pinnacol Infrastructure and
  Cloud Services Manager

Meeting EveryChanging Need

Once a comprehensive RFP yieldeda list of finalists, Pinnacol touredseveral data centers and askedits tech solutions company forrecommendations. The process andevaluations all led to Iron Mountain.

Given Pinnacol's background in riskmanagement, they appreciatedthe data center's impressive riskmitigation measures and focus onavailability. Even more importantthan the feeling of resiliency,though, was its disciplined team.Pinnacol found not only the salesrep, but also the data centeremployees, easy to work withthroughout the transition process.They helped construct a colocationsolution that fit the company'sneeds, even when those needsshifted from the initial contract.For example, after signing thecontract in November Pinnacolneeded to push back the move-indate to March. The company alsothought it needed fourteen cabinetswhen it turned out that only six wererequired. Going above and beyond,Iron Mountain helped Pinnacolscale back and change its move-indate, working with the companyto adjust its contract to meet thenew requirements.

Brian Lindley, the Infrastructureand Cloud Services Manager forPinnacol, observed that while atfirst "there didn't seem to be muchdifference between all the datacenters we toured," the team atIron Mountain really helped themsee the difference. "They go theextra mile to make sure we getexactly what we need when weneed it. We aren't their largestclient, but we're treated like weare. Because of everything they'vedone for us-for our newfoundpeace of mind-I would definitelyrecommend them to anyone lookingfor a top quality data center."

Peace of mind comes partlyfrom saving energy, which hasresulted not only in cost savingsbut also the prospect of additionalrecognition. By moving its datato a more efficient environmentoff-site, Pinnacol lowered its powerconsumption and hopes to pursueLEED certification for its officesonce the on-premise data centeris fully decommissioned.